As the vacation period approaches, it reminds me of the many discussions I have had about annual leave and public holidays for employees on international assignments.
It sounds straightforward, but it is often one of the greyer areas of Global Mobility.
The starting point is usually the employee’s assignment structure. Do they remain employed in the home country, move to a host-country contract, or work under a dual-employment arrangement? Which law governs the employment relationship, and do mandatory host-country protections apply?
In many programs I have worked with, employees retained their home-country vacation entitlement unless the host country provided a greater mandatory entitlement. This may, for example, result in a US employee receiving additional vacation days when moving to Europe.
However, this is a policy approach rather than a universal rule. The organization first needs to determine which laws, contracts, collective agreements, and mandatory host-country requirements apply.
For assignments within the European Union, the posted-worker rules may also be relevant. A qualifying posted worker must receive certain mandatory host-country terms and conditions, including applicable minimum paid annual leave. For longer postings, additional host-country employment conditions may apply.
It is also important not to confuse employment law with social-security coverage. An A1 certificate may confirm which country’s social-security system applies, but it does not determine the employee’s annual-leave entitlement.
Cultural Expectations Around Leave
Legal entitlement is only one part of the discussion. Local culture and workplace expectations can also influence how and when employees take their leave.
In some countries, taking three or four consecutive weeks of vacation is perfectly normal. In others, taking several weeks off at once may be considered unusual or difficult from a business-continuity perspective.
This can create uncertainty for both the assignee and the manager. An employee may technically have the right to take a certain amount of leave but encounter very different expectations regarding how far in advance it should be requested, how much can be taken at one time, and which periods of the year should be avoided.
Employees should therefore receive clear guidance not only on how much leave they have, but also on the practical process and local expectations for using it.
Public Holidays
Public holidays create another layer of complexity. Some countries have more public holidays than others, but a public holiday does not always automatically mean a paid day off. The position may depend on local legislation, the employment contract, or a collective agreement.
Organizations therefore need to decide whether the employee will follow:
- The home-country holiday calendar
- The host-country holiday calendar
- A combination of both
- The host-country calendar with additional days where there is a significant difference
Following the host-country calendar is often the most practical option when the employee works as part of a local team, but the approach should be checked carefully and documented from the beginning.
Organizations should also clarify what happens to any enhanced entitlement when the employee repatriates. Returning to a lower home-country entitlement can be difficult if the employee has become accustomed to more vacation days during the assignment.
Annual leave may appear to be a small assignment detail, but unclear arrangements can quickly create questions around fairness, compliance, and employee expectations.
How does your organization manage annual leave and public holidays for internationally mobile employees?
This article provides a general overview only. The applicable position depends on the countries involved, the assignment structure, the employment contract, local legislation, and any applicable collective agreements.